BTN News: Iberdrola is making a huge investment in Mexico. They are putting in 2.9 billion dollars over six years, during Claudia Sheinbaum’s term. This money will be used to build at least 17 renewable energy plants. These plants will add a big amount of energy—2,855 megawatts. This shows that Iberdrola is shifting its focus towards renewable energy in Mexico. This move will help with sustainable growth in the region.
Iberdrola’s reinvestment is 46.8 percent of the money they made from selling 13 of their power plants. These plants were sold for 6.2 billion dollars. Earlier this year, in February, Iberdrola sold 55 percent of its business in Mexico. However, they still have 1,232 megawatts of renewable energy capacity. They also have 1,166 megawatts from combined cycles and 202 megawatts from cogeneration.
Selling these 13 energy plants has lowered Iberdrola’s thermal production. This includes combined cycles and cogeneration. The production dropped to 11,246 GWh, a 56 percent drop in the first half of the year. Despite this, Iberdrola had a strong operational cash flow of 9,613 million euros in the first half of the year. This is a 27 percent increase from last year. The increase was due to the sale in Mexico and better operational performance. This sale added an extra 1,717 million euros to the company’s cash flow.
Iberdrola decided to sell its plants in Mexico for strategic and political reasons. President Andrés Manuel López Obrador said this sale would help prevent the rise of electricity costs for Mexican consumers. He emphasized that this agreement would benefit the people of Mexico by keeping electricity prices stable.
Before López Obrador became president in 2018, Iberdrola had big plans for Mexico. But, when the new administration came in, it seemed less friendly towards foreign energy companies. This made Iberdrola rethink its strategy. Enrique Quintana, a columnist and editorial director of El Financiero, said that Iberdrola made a big mistake. They included former Mexican President Felipe Calderón on its subsidiary’s board. This move upset López Obrador and his advisor, Manuel Bartlett. Because of this, Iberdrola faced verbal attacks and regulatory obstacles, which slowed down their expansion.
In response to these challenges, Iberdrola changed its focus to renewable energy investments. This aligns with global trends and the growing demand for sustainable energy. This shift helps avoid political risks and positions Iberdrola as a leader in Mexico’s renewable energy sector.
The new renewable energy projects by Iberdrola will use Mexico’s natural resources like solar and wind power. This will help diversify and sustain the country’s energy supply. These investments will also boost the economy by creating jobs and supporting local businesses.
To sum up, Iberdrola’s 2.9 billion dollar investment in renewable energy during Claudia Sheinbaum’s term shows the company’s commitment to sustainable growth and energy change in Mexico. Despite past issues, Iberdrola is set to be a major player in Mexico’s energy future. This strategic move not only fits with global sustainability trends but also positions Iberdrola as a key player in Mexico’s renewable energy sector, bringing economic and environmental benefits for years to come.
